May 2023 Board Meeting Summary
SDCEA Board of Directors meeting highlights, May 30, 2023
Cost of Service Study – The SDCEA Board of Directors approved an expenditure of less than $20,000 to contract with Power Systems Engineering to update the cooperative’s total cost of service and revenue requirements based on 2022 as a test year.
Wildfire Mitigation – Interim CEO Gary Kelly noted SDCEA has a responsibility to clear the electric system of vegetation for wildfire mitigation and to prevent outages. This also serves to keep electric services operational for members. A trained arborist on staff at mitigation contractor Integrity Tree Services ensures mitigation is properly done. Plans for clearing SDCEA lines of vegetation in the town of Buena Vista are in the beginning stages.
Year-to-date (April 2023): Revenues are 5.2% over budget due to selling more power than forecasted. kWh sales are 6% higher for the first quarter of the year compared to 2022. Per the heating degree report, January – April was 7.8% colder in Buena Vista and 4.6% colder in Westcliffe when compared to the 19-year average. Power cost expenses are higher than budgeted because we are selling more power than anticipated. That additional expense is being offset by at or below budget operating expenses, due to several employee positions open. Therefore, total expenses are within 1% of the budget. The 2023 budget is based on our year over year average of kwh sales, with a slight increase for growth in number of consumers and sales.
Executive Session: The board adjourned into executive session to discuss items to be held in confidence. at 11:15 a.m. The board reconvened the meeting at 12:10 p.m. and took the following actions:
- Approved a contract with the National Rural Electric Cooperative Association to conduct an employee survey.
- The board approved a listing agreement for the sale of a condominium the cooperative owns in Denver.
At 12:56 p.m. a second executive session was convened. That session ended at 4:40 p.m. and no action was taken.